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honour to forward herewith for your information copy of a memorandum which I addressed to His Excellency the Governor of this colony, in connection with the proposals of the Secretary of State on. this subject, as set forth in his despatch of the 12th June last. I have, &c, The Hon. the Premier, Wellington. Adye Douglas.

Sub-Enclosure. Memorandum for His Excellency the Governor. Premier's Office, Hobart, 20th August, 1885. The Premier has the honour to return to your Excellency Despatch No. 37, of the 12th June last, requesting the consideration of the Government of this colony for certain proposals connected with the defence of the Port of Albany, Western Australia. Your Excellency's Advisers have given careful attention to this subject; and, whilst fully recognizing the great importance attached to the fortification of a coaling-station so advantageously situated as Albany, they are unable to recommend that, under the existing circumstances of the colony, Tasmania should be burdened with a heavy disbursement of public funds for this purpose. The contribution proposed to be made by Her Majesty's Government towards the expense of the projected works and their maintenance appears to Ministers to be quite inadequate in comparison with the large Imperial interests involved. The principal value of Albany as a coaling-station consists in the facilities it affords to vessels of Her Majesty's navy and to vessels belonging to companies of purely British constitution; and therefore, under these circumstances, as the colonial stake at issue in its existence as a coaling-station is comparatively unimportant, this Government considers that the larger proportion of the estimated cost of the proposed defence works and the attendant expenses should be defrayed by the Mother-country. The Premier, however, is of opinion that a subject of this importance, involving the expenditure of large sums of public money, should be postponed for the consideration of a Federal Council, when the representatives of most of the colonies interested will have an opportunity of fully discussing the merits of the scheme. Adye Douglas.

No. 10. (No. 121.) Sir, — Government House, Wellington, 18th November, 1885. With reference to the despatch from your predecessor, No. 34-, of the 12th June last, concerning the proposed appointment of an unpaid vice-consul at Paro tonga, I have the honour to forward herewith copies of a memorandum from my Government on the subject. 2. It will be seen that my Ministers, whilst considering that the appointment of an unpaid vice-consul would not meet the requirements of the case, undertake, should Her Majesty's Government leave to the New Zealand Government the nomination of an officer to act as vice-consul, and also as agent for New Zealand, to propose to Parliament that this colony should pay his salary. 3. My Ministers have also taken the opportunity to enter fully into the consideration of the whole question of the islands of the Pacific. They urge that steps should be taken to secure the independence of the Hervey Group, that negotiations should be entered into with France for the cession of Papa (Opara), that the Pelew Islands should be annexed to Great Britain, that the independence of the New Hebrides should be maintained, and the Kermadec Islands declared part of the Colony of New Zealand. 4. I beg to draw the special attention of Her Majesty's Government to these recommendations. I have, &c, Wm. c. drummond jebvois. The Right Hon. Colonel Stanley, M.P.

Enclosure. Memorandum for His Excellency the Governor. The Premier has the honour to return herewith Lord Derby's despatch No. 34, of the 12th June last, by which Ministers are invited to express an opinion regarding the appointment of an unpaid vice-consul at Rarotonga, and to make their observations in respect to the expediency of such an appointment.